atans1

S&P index fund beats hedgies over 7 yrs/ Hedgies, PAP ministers & monkeys

In Political governance on 07/05/2015 at 1:44 pm

With three years to go, Warren Buffett is comfortably winning his charity bet that a low-cost index tracker would trounce a portfolio of hedge funds over ten years.

Returns from the S&P 500 index fund is beating a portfolio of funds assembled by hedge fund manager Protégé Partners by 63.5 per cent to 19.6 per cent, according to a slide Mr Buffett presented at Berkshire Hathaway’s annual meeting this past weekend.

(Monday’s FT)

Chart: Buffett's bet (Protégé Partners hedge fund selection v S&P 500 index fund)

http://im.ft-static.com/content/images/1dcdf770-f288-11e4-b914-00144feab7de.img

As to what PAP ministers and hedgies have in common? They pay themselves a lot for mediocre performance.

The $11.6 billion which Institutional Investor’s Alpha calculates this ultra-elite [hedgies] was paid last year, an average of $467 million per hedge fund boss, would still seem troublingly high.

Such gains seem out of line with the value of their putative contributions. After all, the modern economy is built on collaborative effort, not to mention supportive governments and central banks. Even the greatest individual contributions would not merit an annual income, including gains from holdings, of about 10,000 times the average American salary.

To add insult to injury, Alpha calculates that at least 12 of the 25 top guys (sorry, ladies, no women in this club) underperformed in 2014. That is not surprising in a highly competitive industry. BarclayHedge, a consultant which monitors about 3,000 hedge funds, reports the average net return in 2014 was 3 percent. The U.S. stock market provided close to 14 percent.

http://blogs.reuters.com/breakingviews/2015/05/05/hedge-fund-pay-hauls-a-political-financial-shame/

We have one Ah Loong (since the 1980s), Lui, Yaacob and Lim Hng Kiang and had Wong Kang Seng, Mah Bow Tan, Raymond Lim and Goh Chok Tong.

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  1. This shows that PAPies are smart and Sinkies are dumb. Taz why follow wat the PAPies do if you want to have Golden Age.

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